Most life insurance companies earn an underwriting profit, especially on the life lines. If they have diversified into other areas such as annuities or health insurance, profit margins are usually a bit slimmer.
Most carriers earn the bulk of their profit from cash flow investing and earnings on statutory reserves in the general fund.
Life insurance companies have several sources of revenue to potentially generate money. The big one is the cost of insurance or mortality charges. Then the money generated by return on their investment portfolio. Lastly, money is made from front end premium loads, administration charges and individual policy fees.
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Most carriers earn the bulk of their profit from cash flow investing and earnings on statutory reserves in the general fund.